AUD/USD started a decent recovery wave above 0.7550. NZD/USD is also rising and it could continue to rise if it clears the 0.7100 resistance zone.
Important Takeaways for AUD/USD and NZD/USD
- The Aussie Dollar found support near 0.7475 after a steady decline against the US Dollar.
- There is a key bullish trend line forming with support near 0.7560 on the hourly chart of AUD/USD.
- NZD/USD also started a decent increase from the 0.6925 zone, and it climbed above 0.7000.
- There is a major bullish trend line forming with support near 0.7050 on the hourly chart of NZD/USD.
AUD/USD Technical Analysis
After a major decline, the Aussie Dollar found support near the 0.7475 zone against the US Dollar. The AUD/USD pair started a steady recovery after it broke the 0.7500 resistance zone.
It broke the 0.7550 resistance zone and the 50 hourly simple moving average. The pair even broke the 38.2% Fib retracement level of the key decline from the 0.7715 high to 0.7476 low (formed on FXOpen).
An initial resistance on the upside is near the 0.7595. It is near the 50% Fib retracement level of the key decline from the 0.7715 high to 0.7476 low. A proper break above the 0.7595 and 0.7600 resistance levels could open the doors for a steady increase.
The next major resistance is near the 0.7660 level. Any more gains could lead the pair towards the 0.7700 level. Conversely, the pair could correct gains from 0.7600.
An initial support on the downside is near the 0.7560 level. There is also a key bullish trend line forming with support near 0.7560 on the hourly chart of AUD/USD. The next major support is near the 0.7550 level. If there is a downside break below the trend line support, the pair could extend its decline towards the 0.7500 level.
NZD/USD Technical Analysis
The New Zealand Dollar also followed a similar path after a strong decline towards 0.6925 against the US Dollar. The NZD/USD pair started a decent recovery wave above the 0.6950 resistance.
There was a break above the 0.7000 barrier and the 50 hourly simple moving average. The pair even climbed above the 50% Fib retracement level of the key decline from the 0.7154 high to 0.6923 low.
It is now testing the 0.7070 area, where the bears are fighting. The next major resistance is near the 0.7100 zone. It is close to the 76.4% Fib retracement level of the key decline from the 0.7154 high to 0.6923 low.
A clear upside break above the 0.7100 resistance could set the pace for a larger increase. The next major resistance for the bulls could be near the 0.7120 level, above which it could test 0.7150.
Conversely, the pair could start a fresh decline below 0.7065. An immediate support is near the 0.7055 level. There is also a major bullish trend line forming with support near 0.7050 on the hourly chart of NZD/USD.
A downside break below the trend line could push the pair towards the 0.7000 support level. Any more losses might call for a drop towards the 0.6950 support level. The next major support for the bulls may possibly be near the 0.7925 zone in the near term.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.
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